At present, although the machinery industry has entered a medium-speed growth zone, market potential still exists. And at the just-concluded National Two Sessions, the introduction of many favorable policies has injected vitality into the construction machinery industry.

　　In particular, policies related to railway, water conservancy, and rigid-demand housing construction have become boosters for the construction machinery market.

　　According to the adjusted "Medium- and Long-Term Railway Network Plan," by 2015, China's high-speed railway operating mileage will reach 19,000 kilometers; by 2020, China's railway operating mileage will reach more than 120,000 kilometers, and the rapid passenger transport network will basically cover all provincial capitals and cities with a population of more than 500,000 in China. In the practice of 100,000 kilometers of railway construction and operation, China's railways have fully mastered automatic train control technology, achieved mixed operation of trains of different classes, and realized interconnection between high-speed railways and conventional railways; built a railway safety risk prevention and control system, and achieved comprehensive detection and maintenance of trains, lines, bridges, and catenary equipment.

　　A recent National Water Conservancy Directors Conference conveyed the news that in order to safeguard national water security and strengthen the basic and strategic supporting role of water conservancy in economic and social development, in 2014, China will accelerate the construction of a number of major backbone water conservancy projects with radiating and driving effects, and actively deepen reforms to break institutional and mechanism obstacles restricting water conservancy development. This year, while accelerating the progress of ongoing projects, a number of major water conservancy projects will be launched, and the "main artery" will be built well.

　　The latest report "2013 Real Estate Market Operation and 2014 Situation Forecast" released by the Real Estate Chamber of Commerce of the All-China Federation of Industry and Commerce also shows that, against the background of increased supply in the real estate market and steady economic growth, real estate demand this year will remain stable, housing price increases will further decline, and overall housing prices will remain basically stable throughout the year.

　　The release of the above policies undoubtedly provides good market prospects for construction machinery products such as excavators, cranes, bulldozers, compactors, and rock drills used in railway construction, water conservancy construction, and housing construction.

　　"Large but not strong" has always been a label on China's construction machinery industry. At present, the goal of making the industry large has long been achieved. How to make it strong and refined is one of the bottlenecks facing the development of the entire industry.

　　Last year, the Ministry of Industry and Information Technology formulated and implemented a special action plan for the integration of informatization and industrialization, and started compiling management system standards for enterprise integration of informatization and industrialization. Driven by the above policies, as the pace of integration of informatization and industrialization accelerates among industrial enterprises, especially manufacturing enterprises, 2014 is expected to drive a new round of investment growth in manufacturing informatization.

　　As one of the traditional equipment industries, enterprises in the construction machinery industry have a solid foundation in equipment manufacturing. Under the opportunity of the state promoting the integration of informatization and industrialization, they can take this opportunity to enhance their equipment strength through informatization.

　　For some large construction machinery enterprises, they are no longer only concerned with product market coordination, but also with the development of the entire industrial chain. From upstream raw materials to downstream assembly and delivery of various components, and then to sales and after-sales by agents and dealers, more enterprises are already making efforts in this direction. As collaborative production and operation between upstream and downstream of the manufacturing industry become increasingly close, building a full value chain integration platform has become the general trend in manufacturing, and the continuous improvement of vendor integration solutions and integrated platform capabilities also ensures that enterprise value chain integration is closer.

　　It is understood that last year about 73% of manufacturing enterprises achieved data mining on full value chain platforms by integrating ERP with PDM/PLM, integrating with manufacturing execution systems, and integrating and collaborating with suppliers, dealers, customers, and partners, thereby striving to expand their leading advantage in industry competition. For example, facing downstream sales services and dealers, LiuGong developed a DMS management platform, shortening agent pickup time by one week. From SRM to DMS, informatization "connects" the entire link from supply channels to market sales for LiuGong, improving the market response speed of its products. At present, LiuGong's monthly production capacity has increased by 167%. He Jian, director of LiuGong's Information Technology Department, said that LiuGong has now achieved comprehensive digitization of the entire business management and production process.

　　The government work report of the Second Session of the Twelfth National People's Congress emphasized: "Encourage the export of large complete equipment such as communications, railways, and power stations, and let Chinese equipment enjoy global renown." This fully reflects that in recent years China's equipment industry has made considerable progress in product technology, quality, and many other aspects. Although "Made in China" has gone abroad, there is still a distance from truly enjoying global renown.

It is reported that the goal of the "Twelfth Five-Year" development plan for the high-end equipment manufacturing industry issued by the Ministry of Industry and Information Technology is to achieve sales revenue of China's high-end equipment manufacturing industry exceeding 6 trillion yuan by 2015, and strive to basically master the key core technologies of high-end equipment manufacturing through 10 years of effort, with industrial competitiveness entering the world's advanced ranks.

　　At present, a large part of the high-end market for domestic construction machinery is still occupied by foreign brands such as Caterpillar. Although local enterprises have also been committed to developing high-end products, core components with high technology content and high added value, such as transmission components, control elements, diesel engines, and key hydraulic parts, are still mainly dependent on imports. This situation also severely restricts the development of China's equipment manufacturing industry toward high-end technical products, which also leads to the weak international competitiveness of China's high-end construction machinery products.

　　At the same time, due to the low-level operation of the domestic market in recent years, escalating competition in the industry, and limited overseas market development, many enterprises have to be more concerned about survival and development. At the recently concluded CONEXPO-CON/AGG in Las Vegas, USA, we saw many leading domestic construction machinery enterprises. XCMG, Zoomlion, Sany, LiuGong, and others not only demonstrated excellent product technology solutions but also spared no effort in promotion and received many orders on site. For example, Zoomlion signed orders worth 20 million US dollars at the exhibition. It can be seen that the efforts of domestic enterprises to deeply cultivate overseas markets have begun to gain recognition from more and more overseas customers.

This year is the first year of comprehensively deepening reform. Industrial structure adjustment, administrative reform, and promoting urbanization are key reform areas at this year's Two Sessions. With the introduction of related policies in these areas, the future development trend of China's construction machinery industry will also become healthier and more rational.